Taiex rebounds but gains capped amid lingering Middle East concerns

Taipei, March 10 (CNA) Taiwan stocks rebounded Tuesday after shedding 4 percent on Monday, though Middle East tensions kept investors cautious despite falling international oil prices.

The Taiex, the Taiwan Stock Exchange's (TWSE) benchmark index, ended up 661.45 points, or 2.06 percent, at 32,771.87, with turnover totaling NT$702.81 billion (US$22.08 billion).

Buoyed by U.S. President Donald Trump's suggestion that war with Iran could end soon and a 6 percent overnight drop in international crude prices, buying accelerated in early trade, sending the index up 1,146 points to the day's high.

"Some investors simply seized on the initial upturn to pocket profits amid fears that geopolitical uncertainties could lead to more losses in the future," Mega International Investment Services analyst Alex Huang said.

Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, rose 2.21 percent to end at NT$1,850.00 after hitting NT$1,890.00, costing the Taiex around 320 points.

Smartphone IC designer MediaTek Inc. rose 2.40 percent to close at NT$1,705.00, and IC packaging and testing services provider ASE Technology Holding Co. climbed 4.84 percent to end at NT$335.50.

AI server and iPhone assembler Hon Hai Precision Industry Co. fell 0.48 percent to close at NT$209.50, with memory chip supplier Nanya Technology Corp. soaring 10 percent, the maximum daily increase, to end at NT$231.00.

"Nontech stocks largely lagged their tech counterparts today with fuel and gas suppliers suffering steep losses on falling crude oil prices," Huang said.

Formosa Petrochemical Corp. tumbled 10 percent, the maximum daily decline, to close at NT$61.40 and The Great Taipei Gas Corp. also slid 10 percent to end at NT$31.05.

In the financial sector, which rose 0.53 percent, Cathay Financial Holding Co. closed up 1.57 percent at NT$71.10, while Yuanta Financial Holding Co. lost 0.68 percent to end at NT$43.85.

Foreign institutional investors sold a net NT$25.16 billion of shares on the main board Tuesday.